Reported Earnings • Jul 31
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: RM0.066 (down from RM0.14 in FY 2025). Revenue: RM1.44b (down 2.7% from FY 2025). Net income: RM44.7m (down 51% from FY 2025). Profit margin: 3.1% (down from 6.2% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Annonce • Jul 29
SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 28, 2026 SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 28, 2026, at 10:00 Singapore Standard Time. Location: aman room, pe3, plot 17, hilir sungai keluang tiga, bayan lepas free industrial zone, phase iv, 11900 bayan lepas, pulau pinang, Malaysia Upcoming Dividend • Jul 07
Upcoming dividend of RM0.014 per share Eligible shareholders must have bought the stock before 14 July 2026. Payment date: 12 August 2026. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Malaysian dividend payers (5.4%). Lower than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to RM4.95, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 17x in the Machinery industry in Malaysia. Total returns to shareholders of 9.5% over the past three years. Price Target Changed • Jun 03
Price target increased by 30% to RM4.33 Up from RM3.33, the current price target is an average from 2 analysts. New target price is 12% below last closing price of RM4.90. Stock is up 26% over the past year. The company is forecast to post earnings per share of RM0.095 for next year compared to RM0.066 last year. Declared Dividend • Jun 02
Dividend reduced to RM0.014 Dividend of RM0.014 is 50% lower than last year. Ex-date: 14th July 2026 Payment date: 12th August 2026 Dividend yield will be 0.3%, which is lower than the industry average of 3.5%. New Risk • May 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.1% Last year net profit margin: 6.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to RM4.80, the stock trades at a forward P/E ratio of 44x. Average forward P/E is 15x in the Machinery industry in Malaysia. Total returns to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to RM3.70, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 15x in the Machinery industry in Malaysia. Total loss to shareholders of 14% over the past three years. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: RM0.018 (vs RM0.046 in 3Q 2025) Third quarter 2026 results: EPS: RM0.018 (down from RM0.046 in 3Q 2025). Revenue: RM360.0m (down 12% from 3Q 2025). Net income: RM12.2m (down 61% from 3Q 2025). Profit margin: 3.4% (down from 7.7% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 15% per year. Major Estimate Revision • Nov 24
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from RM0.129 to RM0.101 per share. Revenue forecast steady at RM1.50b. Net income forecast to shrink 2.0% next year vs 24% growth forecast for Machinery industry in Malaysia . Consensus price target down from RM3.79 to RM3.33. Share price fell 13% to RM3.73 over the past week. Price Target Changed • Nov 18
Price target decreased by 12% to RM3.33 Down from RM3.79, the current price target is an average from 3 analysts. New target price is 19% below last closing price of RM4.11. Stock is down 3.1% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.14 last year. Reported Earnings • Nov 18
Second quarter 2026 earnings released: EPS: RM0.016 (vs RM0.037 in 2Q 2025) Second quarter 2026 results: EPS: RM0.016 (down from RM0.037 in 2Q 2025). Revenue: RM363.0m (down 1.9% from 2Q 2025). Net income: RM11.1m (down 56% from 2Q 2025). Profit margin: 3.0% (down from 6.7% in 2Q 2025). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 9% per year and the company’s share price has also fallen by 9% per year. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to RM4.55, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 16x in the Machinery industry in Malaysia. Total loss to shareholders of 5.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM2.57 per share. Major Estimate Revision • Aug 27
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from RM1.58b to RM1.51b. EPS estimate also fell from RM0.151 per share to RM0.129 per share. Net income forecast to shrink 5.6% next year vs 23% growth forecast for Machinery industry in Malaysia . Consensus price target down from RM4.04 to RM3.79. Share price fell 7.4% to RM3.88 over the past week. Reported Earnings • Jul 24
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: RM0.14 (down from RM0.20 in FY 2024). Revenue: RM1.48b (down 1.1% from FY 2024). Net income: RM91.9m (down 15% from FY 2024). Profit margin: 6.2% (down from 7.3% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.7%. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Annonce • Jul 21
SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 20, 2025 SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 20, 2025, at 14:00 Singapore Standard Time. Location: aman room, pe3, plot 17, hilir sungai keluang tiga, bayan lepas free industrial zone, phase iv, 11900 bayan lepas, pulau pinang, Malaysia Upcoming Dividend • Jul 10
Upcoming dividend of RM0.028 per share Eligible shareholders must have bought the stock before 17 July 2025. Payment date: 08 August 2025. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Malaysian dividend payers (5.6%). Lower than average of industry peers (2.4%). Price Target Changed • May 27
Price target decreased by 12% to RM4.04 Down from RM4.60, the current price target is an average from 3 analysts. New target price is 5.7% above last closing price of RM3.82. Stock is down 37% over the past year. The company is forecast to post earnings per share of RM0.15 for next year compared to RM0.14 last year. Declared Dividend • May 25
Dividend of RM0.028 announced Shareholders will receive a dividend of RM0.028. Ex-date: 17th July 2025 Payment date: 8th August 2025 Dividend yield will be 0.7%, which is lower than the industry average of 3.5%. Payout Ratios Payout ratio: 23%. Cash payout ratio: 22%. Reported Earnings • May 24
Full year 2025 earnings released: EPS: RM0.14 (vs RM0.20 in FY 2024) Full year 2025 results: EPS: RM0.14 (down from RM0.20 in FY 2024). Revenue: RM1.48b (down 1.1% from FY 2024). Net income: RM91.9m (down 15% from FY 2024). Profit margin: 6.2% (down from 7.3% in FY 2024). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 1% per year. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to RM4.10, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 15x in the Machinery industry in Malaysia. Total returns to shareholders of 1.5% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM2.14 per share. Board Change • Apr 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Independent Non-Executive Director Piroon Saengpakdee was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 21
Third quarter 2025 earnings released: EPS: RM0.046 (vs RM0.054 in 3Q 2024) Third quarter 2025 results: EPS: RM0.046. Revenue: RM406.9m (up 5.1% from 3Q 2024). Net income: RM31.3m (up 6.9% from 3Q 2024). Profit margin: 7.7% (up from 7.6% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in Malaysia. Price Target Changed • Dec 04
Price target decreased by 21% to RM4.56 Down from RM5.74, the current price target is an average from 2 analysts. New target price is 9.8% above last closing price of RM4.15. Stock is up 3.0% over the past year. The company is forecast to post earnings per share of RM0.12 for next year compared to RM0.20 last year. Reported Earnings • Nov 20
Second quarter 2025 earnings released: EPS: RM0.037 (vs RM0.06 in 2Q 2024) Second quarter 2025 results: EPS: RM0.037 (down from RM0.06 in 2Q 2024). Revenue: RM370.2m (down 14% from 2Q 2024). Net income: RM24.9m (down 24% from 2Q 2024). Profit margin: 6.7% (down from 7.6% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. New Risk • Nov 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). Major Estimate Revision • Oct 10
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM1.58b to RM1.53b. EPS estimate also fell from RM0.144 per share to RM0.129 per share. Net income forecast to grow 2.5% next year vs 21% growth forecast for Machinery industry in Malaysia. Consensus price target of RM5.10 unchanged from last update. Share price was steady at RM4.31 over the past week. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to RM4.19, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 21x in the Machinery industry in Malaysia. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM2.14 per share. Major Estimate Revision • Sep 06
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM1.78b to RM1.58b. EPS estimate fell from RM0.186 to RM0.144 per share. Net income forecast to grow 11% next year vs 24% growth forecast for Machinery industry in Malaysia. Consensus price target down from RM5.74 to RM5.10. Share price fell 22% to RM4.19 over the past week. Price Target Changed • Sep 02
Price target decreased by 7.0% to RM5.34 Down from RM5.74, the current price target is an average from 3 analysts. New target price is 16% above last closing price of RM4.60. Stock is down 2.1% over the past year. The company is forecast to post earnings per share of RM0.14 for next year compared to RM0.20 last year. Reported Earnings • Aug 31
First quarter 2025 earnings released: EPS: RM0.015 (vs RM0.038 in 1Q 2024) First quarter 2025 results: EPS: RM0.015 (down from RM0.038 in 1Q 2024). Revenue: RM333.4m (up 8.3% from 1Q 2024). Net income: RM10.1m (down 51% from 1Q 2024). Profit margin: 3.0% (down from 6.7% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 13% per year. Annonce • Aug 30
SAM Engineering & Equipment (M) Berhad Appoints PIROON SAENGPAKDEE as Independent and Non Executive Member of Risk Committee SAM Engineering & Equipment (M) Berhad announced the appointment of Mr. PIROON SAENGPAKDEE, age 54 as Independent and Non Executive Member of Risk Committee. Date of change is on 30 August 2024. Composition of Risk and Sustainability Committee: Chairman: Mr. Suresh Natarajan (Independent Non-Executive Director). Members: Mr. Shum Sze Keong (Non-Independent Non-Executive Director); Mr. Ng Chee Kiet (Independent Non-Executive Director); Mr. Piroon Saengpakdee (Independent Non-Executive Director). Reported Earnings • Aug 02
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: RM0.20 (up from RM0.16 in FY 2023). Revenue: RM1.50b (up 3.6% from FY 2023). Net income: RM108.6m (up 22% from FY 2023). Profit margin: 7.3% (up from 6.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 39%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year and the company’s share price has also increased by 16% per year. Annonce • Jul 26
SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 30, 2024 SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Aug 30, 2024, at 14:30 Singapore Standard Time. Location: sam meerkat (m) sdn bhd, plot 103, hilir sungai keluang lima, taman perindustrian bayan lepas 4, 11900 penang, Malaysia Upcoming Dividend • Jul 10
Upcoming dividend of RM0.033 per share Eligible shareholders must have bought the stock before 17 July 2024. Payment date: 08 August 2024. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 0.5%. Lower than top quartile of Malaysian dividend payers (4.5%). Lower than average of industry peers (1.4%). Declared Dividend • May 31
Dividend of RM0.033 announced Shareholders will receive a dividend of RM0.033. Ex-date: 17th July 2024 Payment date: 8th August 2024 Dividend yield will be 0.6%, which is lower than the industry average of 3.5%. Payout Ratios Payout ratio: 13%. Cash payout ratio: 12%. Price Target Changed • May 30
Price target increased by 18% to RM5.74 Up from RM4.86, the current price target is an average from 3 analysts. New target price is 5.1% below last closing price of RM6.05. Stock is up 30% over the past year. The company is forecast to post earnings per share of RM0.19 for next year compared to RM0.20 last year. Reported Earnings • May 30
Full year 2024 earnings released: EPS: RM0.20 (vs RM0.16 in FY 2023) Full year 2024 results: EPS: RM0.20 (up from RM0.16 in FY 2023). Revenue: RM1.50b (up 3.6% from FY 2023). Net income: RM108.6m (up 22% from FY 2023). Profit margin: 7.3% (up from 6.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • May 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 52% to RM5.84. The fair value is estimated to be RM4.84, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 18%. Revenue is forecast to grow by 45% in 2 years. Earnings are forecast to grow by 47% in the next 2 years. Annonce • Mar 27
SAM Engineering & Equipment (M) Berhad Appoints Piroon Saengpakdee as Independent and Non Executive Director SAM Engineering & Equipment (M) Berhad announced the appointment of Mr. Piroon Saengpakdee as Independent and Non Executive Director. Age: 53, Date of change: 27 March 2024. Professional Qualification: Lawyer's licence Lawyers- Council of Thailand. Masters: Law (LL.M.) Southern Methodist University, Texas, United States of America. Others: Barrister-at-Law Thai Bar Association. Degree: Bachelor of Law (LL.B.) Thammasat University, Thailand. Working experience and occupation: Mr. Saengpakdee graduated from Thammasat University, Thailand with Bachelor of Law (LL.B.) in 1991, achieved a Barrister-at-Law in 1992 and Master of Law (LL.M.) from Southern Methodist University in Dallas, Texas in 1995. He is currently a licensed lawyer of the Lawyers Council of Thailand. With over 25 years of experience, Mr. Saengpakdee worked with international law firms in Thailand, i.e. Freshfields Bruckhaus Deringer and Hunton & Williams prior to joining Rajah & Tann Asia (Bangkok), as a Partner in 2016. He focuses his legal practice on banking and finance, employment as well as real estate matters. He has represented both major Thai and foreign clients in transactions involving a wide range of industries in Thailand, including Lao PDR and Myanmar. Prior to commencing his private law firm legal career, he spent time with the Council of the State and the Department of Labour Protection and Welfare. Reported Earnings • Feb 24
Third quarter 2024 earnings released: EPS: RM0.054 (vs RM0.035 in 3Q 2023) Third quarter 2024 results: EPS: RM0.054 (up from RM0.035 in 3Q 2023). Revenue: RM387.3m (up 12% from 3Q 2023). Net income: RM29.3m (up 53% from 3Q 2023). Profit margin: 7.6% (up from 5.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 23
Second quarter 2024 earnings released: EPS: RM0.06 (vs RM0.05 in 2Q 2023) Second quarter 2024 results: EPS: RM0.06 (up from RM0.05 in 2Q 2023). Revenue: RM428.6m (up 5.4% from 2Q 2023). Net income: RM32.6m (up 21% from 2Q 2023). Profit margin: 7.6% (up from 6.6% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Sep 27
SAM Engineering & Equipment (M) Berhad (KLSE:SAM) entered into a conditional share sale agreement to acquire Aviatron (m) Sdn Bhd Singapore Aerospace Manufacturing Pte Ltd. for approximately MYR 200 million. SAM Engineering & Equipment (M) Berhad (KLSE:SAM) entered into a conditional share sale agreement to acquire Aviatron (m) Sdn Bhd from Singapore Aerospace Manufacturing Pte Ltd. for approximately MYR 200 million on September 25, 2023. The proposed acquisition entails the acquisition of 30,000,000 ordinary shares in Aviatron, representing the entire equity interest in Aviatron, by SAMEE. To acquire the entire equity interest in Aviatron for a cash consideration approximately MYR 203.44 million. The Purchase Consideration will be funded entirely via the proceeds to be raised from the Proposed Rights Issue. In a related transaction, SAM Engineering proposes to undertake a renounceable rights issue of 135,397,357 new ordinary shares in SAMEE. Upon completion of the proposed acquisition, Aviatron will become a wholly-owned subsidiary of SAM Engineering. As of March 31, 2023, Aviatron reported adjusted net assets of MYR 121.2 million, revenue of MYR 126.4 million, EBITDA of MYR 40.9 million, Profit before tax of MYR 7.37 million and Profit after tax of MYR 4.98 million. The transaction is subject to Bursa Securities for the listing and quotation of the 135,397,357 Rights Shares on the Main Market of Bursa Securities and completion of the Proposed Rights Issue. Maybank Investment Bank Berhad and Inter-Pacific Securities Sdn Bhd acted as financial advisors to SAM Engineering & Equipment. Annonce • Aug 29
SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Sep 27, 2023 SAM Engineering & Equipment (M) Berhad, Annual General Meeting, Sep 27, 2023, at 14:30 Singapore Standard Time. Agenda: To receive the Audited Financial Statements for the financial year ended 31 March 2023 together with the Reports of the Directors and Auditors thereon; to re-elect Datuk Dr. Wong Lai Sum who retires in accordance with Regulation 95 of the Company's Constitution and being eligible, offers herself for re-election; to re-elect YM Tunku Afwida Binti Dato Tunku Abdul Malek who retires in accordance with Regulation 95 of the Company's Constitution and being eligible, offers herself for re-election; and to discuss other matters. Price Target Changed • Aug 17
Price target increased by 7.9% to RM4.86 Up from RM4.50, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of RM4.79. Stock is up 11% over the past year. The company is forecast to post earnings per share of RM0.16 for next year compared to RM0.16 last year. Reported Earnings • Aug 02
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: RM0.16 (up from RM0.14 in FY 2022). Revenue: RM1.45b (up 26% from FY 2022). Net income: RM88.8m (up 18% from FY 2022). Profit margin: 6.1% (down from 6.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.7%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 10
Upcoming dividend of RM0.025 per share at 0.5% yield Eligible shareholders must have bought the stock before 17 July 2023. Payment date: 08 August 2023. Payout ratio is a comfortable 15% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of Malaysian dividend payers (5.4%). Lower than average of industry peers (2.7%). Reported Earnings • May 25
Full year 2023 earnings released: EPS: RM0.16 (vs RM0.14 in FY 2022) Full year 2023 results: EPS: RM0.16 (up from RM0.14 in FY 2022). Revenue: RM1.45b (up 26% from FY 2022). Net income: RM88.8m (up 18% from FY 2022). Profit margin: 6.1% (down from 6.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to RM3.81, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Machinery industry in Malaysia. Total returns to shareholders of 203% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM3.43 per share. Reported Earnings • Feb 23
Third quarter 2023 earnings released: EPS: RM0.035 (vs RM0.047 in 3Q 2022) Third quarter 2023 results: EPS: RM0.035 (down from RM0.047 in 3Q 2022). Revenue: RM347.2m (down 1.1% from 3Q 2022). Net income: RM19.2m (down 24% from 3Q 2022). Profit margin: 5.5% (down from 7.2% in 3Q 2022). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Dec 03
Second quarter 2023 earnings released: EPS: RM0.05 (vs RM0.031 in 2Q 2022) Second quarter 2023 results: EPS: RM0.05 (up from RM0.031 in 2Q 2022). Revenue: RM406.5m (up 73% from 2Q 2022). Net income: RM26.9m (up 63% from 2Q 2022). Profit margin: 6.6% (down from 7.0% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 16
Price target increased to RM4.45 Up from RM3.80, the current price target is provided by 1 analyst. New target price is 18% below last closing price of RM5.46. Stock is up 5.6% over the past year. The company is forecast to post earnings per share of RM0.17 for next year compared to RM0.14 last year.